The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Laureate Education (NASDAQ:LAUR) and the rest of the education services stocks fared in Q4.
A whole industry has emerged to address the problem of rising education costs, offering consumers alternatives to traditional education paths such as four-year colleges. These alternative paths, which may include online courses or flexible schedules, make education more accessible to those with work or child-rearing obligations. However, some have run into issues around the value of the degrees and certifications they provide and whether customers are getting a good deal. Those who don’t prove their value could struggle to retain students, or even worse, invite the heavy hand of regulation.
The 8 education services stocks we track reported a very strong Q4; on average, revenues beat analyst consensus estimates by 3.7%. while next quarter’s revenue guidance was 2% above consensus. Stocks–especially those trading at higher multiples–had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and education services stocks have held roughly steady amidst all this, with share prices up 3.6% on average since the previous earnings results.
Weakest Q4: Laureate Education (NASDAQ:LAUR)
Founded in 1998 by Douglas L. Becker and based in Miami, Laureate Education (NASDAQ:LAUR) is a global network of higher education institutions.
Laureate Education reported revenues of $409.4 million, up 18.2% year on year, topping analyst expectations by 5.6%. It was a mixed quarter for the company, with a solid beat of analysts’ revenue estimates but a miss of analysts’ earnings estimates.
Eilif Serck-Hanssen, President and Chief Executive Officer, said, “We delivered robust operating performance in 2023, with double-digit revenue growth and historic high operating margins. We remain focused on the strategic priorities we outlined a year ago, and see continued growth opportunities for 2024, even with a softer market backdrop in Peru during the first half of the year. Our strong balance sheet and high free cash flow generation has allowed us to return excess capital to shareholders, and today we are pleased to announce a new $100 million stock buyback authorization.”
The stock is up 9.5% since the results and currently trades at $14.35.
Read our full report on Laureate Education here, it’s free.
Best Q4: Universal Technical Institute (NYSE:UTI)
Founded in 1965, Universal Technical Institute (NYSE: UTI) is a leading provider of technical training programs, specializing in automotive, diesel, collision repair, motorcycle, and marine technicians.
Universal Technical Institute reported revenues of $174.7 million, up 45.6% year on year, outperforming analyst expectations by 3.8%. It was an exceptional quarter for the company, with an impressive beat of analysts’ earnings estimates.
Universal Technical Institute achieved the fastest revenue growth among its peers. The stock is up 1.8% since the results and currently trades at $14.96.
Is now the time to buy Universal Technical Institute? Access our full analysis of the earnings results here, it’s free.
Grand Canyon Education (NASDAQ:LOPE)
Founded in 1949, Grand Canyon Education (NASDAQ:LOPE) is an educational services provider known for its operation at Grand Canyon University.
Grand Canyon Education reported revenues of $278.3 million, up 7.6% year on year, exceeding analyst expectations by 1.1%. It was a mixed quarter for the company, with revenue guidance for next quarter beating analysts’ expectations but underwhelming earnings guidance for the next quarter.
Grand Canyon Education had the weakest performance against analyst estimates and weakest full-year guidance update in the group. The stock is up 0.6% since the results and currently trades at $131.13.
Read our full analysis of Grand Canyon Education’s results here.
Strategic Education (NASDAQ:STRA)
Formed through the merger of Strayer Education and Capella Education in 2018, Strategic Education (NASDAQ:STRA) is a career-focused higher education provider.
Strategic Education reported revenues of $302.7 million, up 12.1% year on year, surpassing analyst expectations by 1.8%. It was an impressive quarter for the company, with a decent beat of analysts’ earnings estimates.
The stock is up 3.4% since the results and currently trades at $98.45.
Read our full, actionable report on Strategic Education here, it’s free.
Lincoln Educational (NASDAQ:LINC)
Established in 1946, Lincoln Educational (NASDAQ:LINC) is a provider of specialized technical training in the United States, offering career-oriented programs to provide…
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